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Resolute Forest Products (Resolute Forest Products) Gross Margin % : 32.96% (As of Sep. 2022)


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What is Resolute Forest Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Resolute Forest Products's Gross Profit for the three months ended in Sep. 2022 was $321 Mil. Resolute Forest Products's Revenue for the three months ended in Sep. 2022 was $974 Mil. Therefore, Resolute Forest Products's Gross Margin % for the quarter that ended in Sep. 2022 was 32.96%.


The historical rank and industry rank for Resolute Forest Products's Gross Margin % or its related term are showing as below:

RFP' s Gross Margin % Range Over the Past 10 Years
Min: 22.47   Med: 24.36   Max: 38.37
Current: 35.37


During the past 13 years, the highest Gross Margin % of Resolute Forest Products was 38.37%. The lowest was 22.47%. And the median was 24.36%.

RFP's Gross Margin % is not ranked
in the Forest Products industry.
Industry Median: 19.84 vs RFP: 35.37

Resolute Forest Products had a gross margin of 32.96% for the quarter that ended in Sep. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Resolute Forest Products was 7.10% per year.


Resolute Forest Products Gross Margin % Historical Data

The historical data trend for Resolute Forest Products's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Resolute Forest Products Gross Margin % Chart

Resolute Forest Products Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.33 32.14 24.80 28.21 38.37

Resolute Forest Products Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.19 26.14 42.12 38.85 32.96

Competitive Comparison of Resolute Forest Products's Gross Margin %

For the Paper & Paper Products subindustry, Resolute Forest Products's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Resolute Forest Products's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Resolute Forest Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Resolute Forest Products's Gross Margin % falls into.



Resolute Forest Products Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Resolute Forest Products's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1406 / 3664
=(Revenue - Cost of Goods Sold) / Revenue
=(3664 - 2258) / 3664
=38.37 %

Resolute Forest Products's Gross Margin for the quarter that ended in Sep. 2022 is calculated as


Gross Margin % (Q: Sep. 2022 )=Gross Profit (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=321 / 974
=(Revenue - Cost of Goods Sold) / Revenue
=(974 - 653) / 974
=32.96 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Resolute Forest Products  (NYSE:RFP) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Resolute Forest Products had a gross margin of 32.96% for the quarter that ended in Sep. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Resolute Forest Products Gross Margin % Related Terms

Thank you for viewing the detailed overview of Resolute Forest Products's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Resolute Forest Products (Resolute Forest Products) Business Description

Traded in Other Exchanges
N/A
Address
1010 De La Gauchetiere Street West, Suite 400, Montreal, QC, CAN, H3B 2N2
Resolute Forest Products Inc is engaged in the forest products industry with a range of products, including market pulp, tissue, wood products, newsprint, and specialty papers. The product range includes market pulp, tissue, wood products, newsprint and specialty papers which are marketed to nearly 50 countries. The company owns or operates pulp, paper, tissue and wood products facilities in the United States and Canada.
Executives
Patrice Minguez officer: President, Tissue Group C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, MONTREAL A8 H3C 2M1
Hugues Simon officer: President, Wood products 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Sylvain A. Girard officer: Chief Financial Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Duncan Davies director 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Stephanie Leclaire officer: Chief Legal Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Daniel Viboux officer: Chief Accounting Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1
Suzanne Blanchet director 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1
Michael S Rousseau director C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2
Alain Rheaume director C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2
Lori Kilgour officer: SVP, Chief Information Officer 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C2M1
Daniel Ouellet officer: SVP Human Resources 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1
Richard Joseph Tremblay officer: SVP, Pulp and Paper Operations C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1
John Lafave officer: Senior Vice President C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL A8 H3B 5H2
Randall C Benson director RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1
Bradley Martin director C/O ODYSSEY RE HOLDINGS CORP., 300 FIRST STAMFORD PLACE, STAMFORD CT 06902